
McDonalds CEO Seeks to Change Corporate Culture

Corporations and institutions with relative high visibility have a lot to lose when internal misconduct is exposed. If you are an institution, such as a school, prison, or government body, internal misconduct can strongly shake the publicโs confidence in how that misconduct will impact the groups and communities being served. Embarrassing, pervasive issues, such as a business party culture, can really drive down faith in your brand. If youโre a large corporate chain, such as Walmart, or McDonaldโs, your corporate culture is subject to criticism from current/past employees, with heavy emphasis on how that corporate culture effects both productivity and the workforce.
Just one week after ringing in the new year, McDonaldโs current CEO, Chris Kempczinski, has announced that he plans to bring an end to the business party culture embroiled in their corporate atmosphere. According to The Wall Street Journal, Kempczinski, โโฆis seeking to restore a more professional culture at McDonaldโs after what some current and former employees described as an environment influenced by his predecessorโs late-night socializing with some executives and staffers at bars and flirtations with female employeesโฆโ This business party culture was pervasive. His predecessor, Steve Eastbrook, was terminated in November of 2019 after he confessed to having a relationship with an employee. What is particularly problematic about these circumstances is that healthy corporate culture begins with leadership. When leadership behaves ethically within the organization, employees are more likely to follow that example. When executives, managers, and supervisors are not held accountable for bad behavior, it sends a message to the rest of the organization that poisons the well of corporate culture.
But inappropriate personal conduct is not the only challenge currently facing McDonaldโs culture. Strains imposed by the franchisesโ renovation program has franchisees challenging their relationship with the corporation. In addition, unions are still reeling from a decision handed down by a national union-organizing supervision board, which states that the corporation will no longer be liable for labor violations committed by its franchisees. Labor advocates who made their concerns apparent to the board were ignored, and the decision came down with a 2-1 vote. In the background, employees continue their cause of โFight For 15,โ in reference to their desire to have McDonaldโs starting wage raised to $15 per hour.
Kempczinskiโs promise to diffuse a business party culture within the corporation is a promising startโhowever, in order to make meaningful changes to the corporation, there needs to be a top-to-bottom evaluation of internal processes, and of the behavior exhibited by leadershipโboth in the public view and behind closed doors. That is why so many institutions and corporations are subjecting their internal operations to a corporate culture audit to ensure that they wonโt be caught unawares about the debilitating, pervasive issues within their organization. Regardless of quality, corporate culture moves in a cycle. The actions of leadership filter down through the workforce, influencing productivity and engagement from employees. Employees either contribute positively or negatively to the corporation as a result of that leadership, and that leads directly back to leadership in a supervisory capacity. For the sake of a long-beloved American corporation, letโs hope that Kempczinski follows through on his promise for change.